Your Credit Score and Utah Car Insurance Rates
Q: Will my credit score be considered when rating my Utah SR-22 policy?
A: Well, Utah SR-22 companies don’t really consider credit scores, but they do tend to look at credit reports. Car insurance companies actually come up with their own score, which is called an insurance risk score, based on the information in your credit report. In order to come up with this score, they look at information on your credit report which probably won’t affect your FICO score in the biggest way, such as whether or not you pay consistently, and not how much you owe or to how many places.
The importance of credit scoring in your Utah SR-22 premium will depend on the company. Several companies have done studies which give the information that people who have a bad credit history are statistically more likely to file claims, and the inverse is true for people with good credit history. However, some companies do their own studies, so if they find this has a smaller effect, then you won’t see it as such a big deal in your rating scheme.
Using credit reports to rate insurance has been controversial, with many saying the practice is discriminatory. However, it’s here for now, so one of the best ways to get cheap Utah SR-22 is to improve your credit history.
